1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
EleoNora [17]
3 years ago
8

You are thinking of buying a bond from Knight Corporation. You know that this bond is long term and you know that Knight’s busin

ess ventures are risky and uncertain. You then consider another bond with a shorter term to maturity issued by a company with good prospects and an established reputation. Which of the following is correct?
a. The longer term would tend to make the interest rate on the bond issued by Knight higher, while the higher risk would tend to make the interest rate lower.
b. The longer term would tend to make the interest rate on the bond issued by Knight lower, while the higher risk would tend to make the interest rate higher.
c. Both the longer term and the higher risk would tend to make the interest rate lower on the bond issued by Knight.
d. Both the longer term and the higher risk would tend to make the interest rate higher on the bond issued by Knight.
e. The bonds from both companies would carry the same interest rate as those rates are set by the Federal Reserve.
Business
2 answers:
emmasim [6.3K]3 years ago
8 0

Answer:

Answer is D. Both the longer term and the higher risk would tend to make the interest rate higher on the bond issued by Knight.

Refer below.

Explanation:

You are thinking of buying a bond from Knight Corporation. You know that this bond is long term and you know that Knight’s business ventures are risky and uncertain. You then consider another bond with a shorter term to maturity issued by a company with good prospects and an established reputation. The following is correct:

Both the longer term and the higher risk would tend to make the interest rate higher on the bond issued by Knight.

8_murik_8 [283]3 years ago
4 0

Answer:

d. Both the longer term and the higher risk would tend to make the interest rate higher on the bond issued by Knight.

Explanation:

Both the longer term and the higher risk would tend to make the interest rate higher on the bond issued by Knight because this bond is risky and uncertain.

This means the company would not want to run at a loss

You might be interested in
Marketing in foreign markets can require altering the goods or services offered to meet the taste of local customers. therefore,
ziro4ka [17]

<u>Global marketing mix</u> that includes different strategies and types of ads based on the target market.

8 0
3 years ago
Question 13 of 20
____ [38]

\:\huge\mathbb\red{Answer}

Option A is the correct answer

4 0
2 years ago
You believe that the spread between the september s&amp;p 500 future and the s&amp;p 500 index is too large and will soon correc
Dvinal [7]

You believe that the spread between the September s&p 500 future and the s&p 500 index is too large and will soon corrected. to take advantage of this mispricing, a hedge fund should <u>sell S&P 500 Index futures and buy all the stocks in the S&P 500.</u>

A fund is an investment allocated for a specific purpose. The fund's cash pool is often professionally invested and managed. Some common types of funds are pension funds, insurance funds, endowments, and endowments.

Funds are formed by pooling funds from multiple investors. A fund is a pool of funds available for a specific purpose. A professional manages the money and invests it in securities. Fund managers manage funds and use several strategies to effectively invest their funds.

Learn more about Funding here: brainly.com/question/25887038

#SPJ4

5 0
1 year ago
The common stock of the Avalon Corporation has been trading in a narrow range around $40 per share for months, and you believe i
Monica [59]

Answer:

C. Sell a straddle

Explanation:

Considering the following calculation: Sell a straddle = sell a put + sell a call

and,

Premium income for selling a straddle = (P + C )100 = ($3 + $4)(100) = $700.

a short straddle involves simultaneously selling a put option and call option with the same underlying asset, same exercise price and expiration date

By Selling a 3 month put option with exercise price of $40 one will get $3 (inflow of $3)

Simulatenously By Selling a 3 month call option with exercise of $40 one wiil get $4(inflow of $4)

Thus the total premium income of selling a straddle is $7

7 0
3 years ago
A currency is said to have appreciated when it commands a ____________ amount of a foreign currency. it results in foreign goods
Tasya [4]

A currency is said to have appreciated when it commands a <u>larger</u>, amount of foreign currency. it results in foreign goods becoming <u>cheaper</u> for a country.

Foreign currency is something this is usually generic to have a price as a medium of alternate in order that it may be traded for goods and offerings. The trading gadget within an economy is based on its foreign money, which is normally specific to a rustic and issued with the aid of that country's government.

Currency is a medium of exchange for goods and offerings. In brief, it is cash, in the shape of paper and coins, typically issued by using a government and normally regularly occurring at its face price as a method of payment.

Learn more about Currency here: brainly.com/question/2202418

#SPJ4

4 0
2 years ago
Other questions:
  • Matt wants to take out a simple interest loan on a car priced at $14,289. the interest rate is 3.5% for 5 years. how much will h
    8·1 answer
  • A company has $ 235 comma 000 in credit sales. The company uses the allowance method to account for uncollectible accounts. The
    13·1 answer
  • The process of refining the system to make sure that it continues to meet business and organizational needs is called _____. Sel
    8·1 answer
  • Fitness is the measure of ____________ and ability to produce more ________
    5·1 answer
  • Tom oversees the logistics department for a holiday resort in Virginia. He has created a plan to bring in customers directly fro
    9·2 answers
  • If the quote for a Treasury bond is listed in the newspaper as 99.25 bid, 99.26 ask, the actual price at which you can sell this
    15·1 answer
  • Defined as a loss in value from any cause, depreciation is generally divided into three categories. The loss of value due to the
    15·1 answer
  • Part of establishing an audience adaptation plan is determining what you can do to make it easier for audience members to compre
    9·1 answer
  • What are the 5 characteristics of objectives
    11·2 answers
  • in a management information system, structuring the data component to define what type of data is collected and in what form is
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!